Gate Ventures: Market Divergence Intensifies, Infrastructure Remains the Main Destination for Crypto Funding

October 20 – According to Gate Ventures' latest weekly market report, in the week ending October 16, volatility in global financial markets intensified, high-valuation tech stocks remained under pressure, and capital rotated toward defensive and value assets. The crypto market showed structural divergence over the same period, with BTC up 2.4% for the week, ETH down 5.1%, total crypto market cap down 2.2%, and the Fear & Greed Index retreating from 69 to 59. Meanwhile, both spot BTC and ETH ETFs recorded net outflows, indicating cooling market sentiment.

At the industry level, digital asset regulation and financial infrastructure development continued to advance. Australia released draft legislation for a crypto asset tax information reporting framework, while Sweden initiated legal preparations related to the digital krona, reflecting sustained attention on digital asset tax transparency and currency digitization. On the funding front, a total of 5 deals were completed last week, of which 4 were in the infrastructure sector, with related funding reaching $18 million. Despite an overall marked cooling in funding activity, infrastructure still accounted for the main share, indicating that capital allocation continues to concentrate on underlying capabilities such as tokenized asset liquidity, settlement, and on-chain financial infrastructure.